Connecting to the Internet or to any other communication service often requires end users to acquire some equipment (sometimes referred to as customer premises equipment or CPE). This equipment often includes devices capable of receiving and transmitting information over an applicable media, such as cables, telephone wires, optic fibers, etc. Other types of such devices may be capable of wireless communication and/or satellite communication. In some cases, such equipment may be configured to support more than one technology (e.g. cellular phones, which may operate both in GSM and CDMA networks).
Services as described above are often available from several providers. The competition may drive some providers to subsidize the CPE in order to attract more subscribers. In such cases, a provider may lend the CPE, lease it for a low monthly fee or sell it at a significant discount while expecting to recover the investment in the CPE and eventually make a profit through collecting service fees over several years of providing the service. In cases where the CPE is compatible for use in networks of several providers, this economic model could work only if a provider can hold on to subscribers and prevent them from taking CPE units bought at discount and seeking service with other providers.